BANGKOK — Thailand will ramp up imports from the United States, cut certain tariffs on American products, and tackle non-tariff trade barriers, Finance Minister Pichai Chunhavajira announced on April 8, as the country works to ease tensions over recently imposed U.S. tariffs.
The 36% tariff slapped on Thai goods by the U.S. government is one of the steepest under President Donald Trump’s administration, exceeding Bangkok’s expectations.
Mr. Pichai, who will lead Thailand’s negotiation efforts, indicated that while talks with the U.S. are confirmed, there is no rush to head to Washington, as the country needs time to shape its proposals. He added that Thailand aims to balance its trade with the U.S. over the next decade.
Prime Minister Paetongtarn Shinawatra confirmed that a meeting with U.S. trade officials is on the books, although details remain under wraps. She advised Thai exporters to explore new markets to reduce their reliance on the U.S., and promised government support for businesses feeling the pinch from the tariffs. Mr. Pichai cautioned that the tariffs could trim up to one percentage point from Thailand’s economic growth in 2025.
Before the tariffs, Thailand had been aiming for a 3% growth rate in 2025, following an estimated 2.5% expansion in 2024 — a pace already trailing its regional counterparts.
To counterbalance trade tensions, Thailand plans to boost imports of U.S. products including corn, soybeans, crude oil, ethane, liquefied natural gas, cars, electronics, and aircraft, while also reviewing import policies on American pork. Thailand reported a $35.4 billion trade surplus with the U.S. in 2024, although U.S. data puts the figure higher at $45.6 billion.
Markets reacted swiftly to the tariff news, with Thailand’s main stock index plunging by as much as 6.1% on April 8, the first trading day after the announcement. To calm market volatility, the Stock Exchange of Thailand on April 7 temporarily halved stock movement limits to 15% and banned short selling.